I am willing to estimate a small open economy model, Monacelli (2005).
The model is in quarterly frequency so I need quarterly data. I noticed that the CPI index aggregation method in most databases is an average of the 3 monthly observations instead of the end of period level.
When calculating inflation for estimation purposes, should I use the end of period CPI value for each quarter in the lower frequency database? Or is it fine that I use the quarterly data presented in databases?
Thanks.
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Data frequency for estimation.
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Data frequency for estimation.
by Lexes9 » Sat Jul 23, 2016 11:20 am
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Re: Data frequency for estimation.
by jpfeifer » Sun Jul 24, 2016 10:41 am
People almost always use the data as presented in databases, so you should be fine
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